Was the Industrial Revolution driven by new machines or a change in human attitude?
While the 18th-century rise of machines and the factory system is well known, the true drivers of modern prosperity remain a subject of intense debate among economists.
The video explores the origins of 'innovationism'—the explosive rise in invention following the eighteenth century that created the 'Hockey Stick of Human Prosperity.' It examines competing theories on what triggered this shift: Douglass North suggests the importance of institutions like property rights and the rule of law, while others point to education and energy access. However, economic historian Deirdre McCloskey proposes a more cultural cause: a fundamental shift in social values where society began to celebrate merchants and inventors rather than just conquerors and kings.
Understanding these drivers is critical, as it may provide a blueprint for helping developing nations increase their level of prosperity.
